(Alliance News) - Stenprop Ltd said Tuesday it has sold its Hermann Quartier shopping centre in Berlin to Munich-based firm ILG Capital GmbH for EUR30.8 million.
ILG is acting on behalf of the regulated special property fund ILG Einkaufen D, managed by IntReal International Real Estate Kapitalverwaltungsgesellschaft mbH.
The disposal price is in line with the September 30 book value and reflects a 19% premium to the March 31 valuation, Stenprop noted. Hermann Quartier totals 8,274 square metres of gross lettable space and is located above the Hermanstrasse S- and U-Bahn station. The weighted average rental is currently about EUR15.20 per square metre, Stenprop said.
Net proceeds from the sale after deduction of anticipated transaction costs, repayment of debt and property taxes are expected to be EUR19 million, which Stenprop intends to use to fund further acquisitions in the multi-let industrial sector.
Stenprop said this deal will conclude the sale of its food-led Berlin retail portfolio following the sale of Neucolln Carree retail park earlier this year and the recent exchange of contracts on the sale of the Victoria Centre.
"It further progresses Stenprop's strategy to become a 100% UK multi-let industrial business by March 2022, with the company's multi-let industrial assets expected to rise from 64% to 72% of Stenprop's total portfolio once the sale completes," Stenprop added.
James Wakelin, head of Debt & Special Projects, said: "Exiting the Berlin retail portfolio represents another significant milestone towards Stenprop's transition to become a fully focused UK multi-let industrial REIT and is the culmination of a successful year in our disposal programme.
"Our multi-let industrial portfolio has performed well throughout the pandemic, providing further evidence of the resilience of the asset class. We look forward to putting the proceeds of this sale to work into our strong pipeline of opportunities as we remain on target to be 100% multi-let industrial by the end of the next financial year."
Shares in Stenprop were 0.3% higher in London on Tuesday morning at 135.33 pence each. In Johannesburg, the shares were down 1.9% at ZAR25.51.
By Paul McGowan; paulmcgowan@alliancenews.com
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